Covering all California kids is right thing to do.

In the aftermath of the November special election, the governor and legislative leaders are undoubtedly debating what policy and political paths to take to operate in the bipartisan climate voters have demanded. As business leaders, we should point them in one direction: insuring all children who currently lack healthcare coverage.

First and foremost, covering kids is the right thing to do for those children most in need. And covering kids is good politics too. Children's health is an issue that cuts across political and ideological divides. Indeed, in a recent statewide survey, nearly four in five voters (78 percent) said they would support a plan to ensure that every California child has health insurance.

But many business leaders will also tell you that covering all kids is good economic policy--for the state as a whole and for individual businesses. Health insurance allows children to receive preventive care and medical and dental attention before a problem gets serious--and more costly. Every dollar spent on childhood immunizations, for example, saves $13 down the road.

Insuring children will help lower parents' absenteeism and loss of productivity that result from sick children. Nationally, absenteeism costs employers between $2 and $12 billion each year, suggesting that ensuring adequate access to preventive care for children could save California employers billions of dollars over the long-term.

Providing health coverage for all California kids would also produce tremendous benefits for the state's economy. Consider that federal matching funds are available for approximately 62 percent of California's uninsured children. By enrolling children in public insurance, California could gain hundreds of millions in new federal dollars that would flow into local economies. In total, California counties can expect an estimated $390 million in state and federal resources from insuring children in existing public programs, with the federal government financing up to two thirds of this amount. These funds create a multiplier effect, generating new jobs, new revenues and stronger local economies.

At a series of convenings conducted by the United Way this past year, business leaders from throughout the state showed strong support for the concept of covering all kids, and acknowledged it is wise economic and social policy for California.

So how do we reach our goal of insuring every child? We begin by making the current system more efficient and cost effective. In California, we know that making better use of what we already have goes a long way towards reaching our goal. Of the estimated $330 million annually that would he required to provide comprehensive health coverage to all California's kids, about 70 percent is already being spent to provide episodic care to uninsured children.

Small investment

Other core elements for a solution are already in place. Employer-based insurance now covers more than 50 percent of California's children. Publicly funded programs cover 30 percent. With relatively small investments, California can leverage matching federal dollars to complete the job and cover all kids.

Elise Bulk is President and CEO of United Way Greater Los Angeles. Bruce Ackerman is President and CEO of the Economic Alliance of the San Fernando Valley